In financial conditions, this conflicted determination could be modeled like a trade-off in between the outcome utility received by hedging (e.g., funds) as well as diagnostic expenses it incurs (e.g., disloyalty). Individuals make inferences with regards to their beliefs and identity from their actions. If someone is unsure about an aspect of his / her identity, including the extent to which he / she values a prospect or staff, hedging may well sign to him or her that he or she just isn't as devoted to that prospect or crew as they originally considered. If the diagnostic price of this self-sign as well as the ensuing identification transform are significant, it may outweigh the result utility of hedging, and he / she may reject even very generous hedges.[forty six]
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